Progressive settles Michigan class action for total loss claims

Policyholders entitled to compensation for missed taxes and fees

Progressive Michigan Insurance Co and Progressive Marathon Insurance Co have agreed to pay out a hefty $61 million to settle a class-action lawsuit. This lawsuit alleged that the insurance companies neglected to include essential fees in payments for total-loss automobile insurance claims.

The lawsuit specifically mentioned that sales tax, certificate of title fees, and vehicle registration transfer fees were not considered when paying out claims for vehicles classified as total losses.

If you’re a Michigan resident who filed first-party claims with Progressive Marathon between July 18, 2013, and July 22, 2024, for physical damage or theft resulting in a total loss, you might be part of this settlement. Similarly, Michigan policyholders who filed similar claims with Progressive Michigan between July 18, 2016, and July 22, 2024, are also included in this class.

The settlement terms state that class members will receive 45% of any unpaid sales tax or fees, as long as attorney fees remain within the $12.5 million to $15 million range. Should court-approved attorney fees fall below $12.5 million, the settlement payouts for class members will be adjusted accordingly.

While Progressive denies any wrongdoing and claims to have followed the terms of its Michigan auto insurance policies, the company retains the right to verify the accuracy of claims submitted under the settlement.

In a separate legal issue, Progressive is facing a class-action lawsuit in Massachusetts for allegedly failing to offer drivers the option to purchase collision coverage. These denials primarily relate to individuals with criminal convictions, vehicles with salvage titles, or those lacking adequate anti-theft protections.

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